Consumer discretionary has been on the upswing, and we looked at former best of breed play BKE recently, and this could be a very positive development for the stock market. LULU alone is now higher by 20% YTD, M recently took out a nice ascending triangle pattern. TGT is looking for a 4th consecutive up week and is shaping a good looking cup base and approaching all time highs. The sector was beaten down and remember you always want to buy names that are acting well. Sure one can time a trend reversal, but it is always better to buy strength, as trend are more like to persist than reverse. Below we look at some names that have been acting well and exactly how they appeared in our nightly Game Plan. If you would like a full copy of Thursdays Game Plan please email me at firstname.lastname@example.org.
In our Tuesday 2/9 Game Plan this is how we looked at PLCE.
Stocks that can be bought after bullish hammers are PLCE. PLCE is a best of breed retail play UP 12% YTD and 4% over the last one year period and sports a dividend yield of 1%. Earnings were very well received with 4 consecutive positive earnings reactions with gains of 12.5, 1.8, 7.8 and 8.8% on 12/8, 8/25, 5/6 and 3/12. (the 5/6 was also boosted by news the it hired GS to explore a sale). The stock is higher 9 of the last 12 weeks with the week ending 1/8 up 11% in double active weekly volume. Last weeks loss of 4.8% came in timid trade. Monday the stock bounced off the round 60 number which doubles very closely to the 200 day SMA. Monday recorded a bullish hammer candle as well and enter on a pullback into it at 61.